If the employer provides any fuel used for private journeys and is not reimbursed for the cost, the 2018/19 tax bill for the fuel is: £23,400 x 34% x 40% = £3,182.40.

Company vans

The taxable benefit for any private use of company vans is £3,350; however, if the only private use of the van is for home-to-work travel then the van is not taxable; insignificant other private use can also be ignored but care is needed. There is also a taxable benefit of £633 if any fuel is provided by the employer for private travel (including home-to-work travel).

The tax payable for both van and fuel benefit (for private use) for a basic rate (20%) payer is £796.60, a 40% payer is £1,593.20 and someone paying 45% tax and using a company van would be £1,792.35.

Company vans which do not have emissions attract a benefit-in-kind charge.

For 2018/19 this will be 40% of the full charge ie £1,340 (ie 20% X £3,350).

The company's class 1A NIC payable ranges from £184.92 to £549.65.

Beyond 2018

For 2019/20 all the above rates are uplifted by 3%.

From April 2020, there will be new lower bands for the lowest emitting cars (ULEVs). The appropriate percentages will be:

zero-emission cars: 2%

cars with CO2 emissions between 1g/km and 50g/km: range from 2-14%, depending on the number of zero-emission miles the vehicle can travel.

The changes also increase the appropriate percentages by 1% to a maximum value of 37% for cars with CO2 emissions of 90g/km and above.

These changes will affect employers and those individuals participating in company car schemes.